Gold ETF Outflows Slow in March Despite Continued European Selling; Prices Rise on Strong Fundamentals and Upside Potential Remains
• Gold-backed ETFs saw reduced outflows in March, the slowest rate since February 2020, as North American funds had small inflows while Asian funds continued growing • However, European funds faced heavy selling for the 10th straight month, offsetting gains elsewhere • ETF flows were secondary as gold prices rose 8% in March on strong fundamental demand drivers like geopolitics and central bank buying • Despite record highs, metrics show gold remains under-owned overall, with ETFs a small part of total assets and open futures interest below that of other assets • The author sees considerable upside potential still remaining due to supportive market fundamentals for gold